The average electricity price for customers on regulated rates who are connected to the wholesale market is projected to drop by 10.91% by Tuesday compared with Monday. The rate stands at 143.05 euros per megawatt-hour (MWh) based on provisional figures from the Iberian Energy Market Operator (OMIE), as reported by Europa Press.
This figure results from the sum of the wholesale market auction average and the compensation applied to the combined cycle plants under the Iberian exception that caps gas for electricity generation. The mechanism limits gas costs to keep electricity prices within a manageable range for consumers in Spain.
During the auction, the wholesale market average price, often referred to as the pool, is 100.16 euros per MWh on Tuesday. The day’s peak price is forecast at 164 euros per MWh between 22:00 and 23:00, with a trough of 21.01 euros per MWh between 17:00 and 18:00.
Adding 42.89 euros per MWh as the compensation paid to natural gas suppliers to support gas-fired generation brings the total pool-related price to the consumer. This affects beneficiaries of the measure who belong to the regulated rate (PVPC) or those on indexed rates, even if they participate in the free market. (Source: Iberian mechanism overview)
31.6% less
Without the Iberian exception in place to curb gas costs for electricity generation, Spain’s average electricity price would be around 209.23 euros per MWh. This would imply higher costs for customers paying more than 66.18 euros per MWh, resulting in roughly 31.6% higher charges on average. The current policy framework, by contrast, reduces the impact on households and businesses allowed to purchase through regulated or indexed arrangements.
The Iberian mechanism was activated on June 15 to contain gas prices used for electricity generation, aiming to smooth out price spikes over the season. This approach has historically kept average costs in check through a combination of market-auction signals and targeted compensation for gas-based generation during periods of elevated energy prices. The intent is to shield consumers from sudden, sharp increases while ensuring that gas-fired plants remain available to meet demand when wind and solar output may be lower. (Source: Iberian mechanism overview)
Specifically, the Iberian exception outlines how natural gas is priced for electricity generation. It sets a base of 40 euros per MWh, with an increase of five euros per MWh each month during the first six months, followed by a stable trajectory through the remainder of the measure. This pricing framework is designed to provide price visibility for the winter period when energy demands and prices are commonly higher. (Source: Iberian mechanism overview)